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What is the difference between saving and investing?

An investment account is different to a savings account you might have with your bank. Unlike a savings account, an investment account has a higher level of risk associated with it, meaning the returns are not set and could go up or down.

Saving is generally low risk - which equals lower interest, whereas investing aims to make more money by taking on more risk. Usually, you can get a higher return on your money when investing but it isn't always guaranteed.

They might seem similar but knowing the difference between saving and investment could make you more money.

Watch this video to get a better understanding of the difference between saving and investing.

The difference between saving and investing

You can also read more about the difference between saving and investing here.